Portfolio Management

Our investment philosophy advocates that the key factor for a successful investment strategy is the correct distribution of assets between the different investment categories (Asset Allocation).

That is, the application of the long-term investment strategy of an investor's wealth in the main investment categories (bonds, stocks, cash, alternative investments). Academic research has shown that over 90% of an investment's return depends on proper asset allocation.

The individual characteristics of the investor reflect the final application of this strategy. The main parameters taken into account are the following:

  1. Performance / Undertaken Risk
  2. Investment Horizon
  3. Economic situation
  4. Exchange rates
  5. Optimal Capital Allocation

The purpose of the correct asset allocation among the different investment categories (Asset Allocation) is to find a mix of investments that can potentially increase the value of the assets, while at the same time keeping the risks at the desired levels.

The above-described methodology is applied with the most modern computer programs and based on the most modern scientific studies in the field of finance. The result is the redistribution of the initial capital to specific securities, where the final structure and composition is achieved by the induced weight factors (Optimization Technique).

The portfolios' strategic allocations are broadly diversified so as to gain exposure to areas of markets where the investment advisers believe they can perform effectively over the full market cycle (including periods of adverse economic conditions such as recessions and inflationary growth).

Asset Allocation between different investment classes can change as markets move up and down. Periodic rebalancing of the portfolio redefines the original target allocation.

We should emphasize that the application of the selection and basic capital allocation methodology can be applied also to other investment categories besides the basic ones (Cash, Bonds, Shares). Such an application should be considered as a successful one if it had the same targeting as far as depth market principle and relative efficiency are being respected (absolutely efficient markets do not exist anyway).